Performance appraisal in China

 

1. INTRODUCTION

In this section, the author at first would like to provide the general background about the theme of performance appraisal. And then the general problems about this topic will be illustrated by the author. Through answering these questions, the author intends to find out the issues of performance appraisal in Chinese context.

 

1.1 RESEARCH BACKGROUND

Today, in the world of business and management, human as an extremely important corporate resource, plays a critical role in business organisations. As a specific resource, human is not the same as other organisational resources such as capital and fund that was used passively inside corporation. Human resource sometimes is active in organisation and it can control other resources. As a developing country, in particular, the People’s Republic of China, to stress how important and emergency the human resource management is become increasingly important in order to help to conduct market economy policy stably and maintain successfully the development the economic reform.

 

It can be known that, productive feedback is very important to success of the organization. As a crucial function of HRM, to correct assess employees (both individuals and groups)’ behaviour and performance and impact is very important to examine whether they perform their full potential ability. However, in practice many companies failed to do that and a large number of appraisals are inadequate.

 

In the eastern world, in particular in China, a development of human resource management (HRM) becomes increasingly important and emergence. A great number of companies pay much more attention to the issue how to make performance appraisal more effective (do the right thing).

 

Because various companies have their own organisational cultures, effective performance appraisal needs a suitable, proper and practical approach. According to Fletcher (1997: 3), the most appropriate approach in one company may be very ineffective and impractical in another company. Moreover, even within the same teams and departments, different outcome can occur. As a result, it can be understood that within a company, various departments also require a practical and suitable performance appraisal approach. Consequently, the author considers that what impacts may occur between western managerial style and Chinese managerial style.

 

Performance appraisal system in the western world has developed for a quite long period and thus many experiences from western system of performance appraisal can be adopted as guidance for development of performance appraisal in Chinese context. On the other hand, because of various cultural environments, cross-culture differences cannot be ignored and these critical cultural factors must be considered by those Chinese managers.

 

Hempel (2001:203) points out that in fact performance appraisal is a tool of organizational control. However, the author thinks that the situation might be quite different in Chinese management because of different criteria.

 

Performance appraisal as an effective control and communicate tool is very useful. It can be used to evaluate what is done and achieved by staffs within the company, to analyse what is important and the criteria. However, it also has some disadvantages. One example is that, as a managerial tool, performance appraisal is often ineffective. As a result, Timperley (1998:44) notes that performance appraisal is not just a concept, the most important thing is that it is the ways in which it been implemented. In addition, the problem of rating scale is also the big and common issue of performance appraisal and it causes an ineffective appraisal (Fletcher, 1997; Longenecker, 1997; Fletcher and Williams, 1992). Bearing these disadvantages in mind, the author intends to research what those problems may occur in the Chinese environment because of various cultural influence.

 

In addiction, many scholars have found out that cultural factors have impacts on performance appraisal. For example, Hempel (2001:203) obtained a conclusion that some of the differences exist through examining both Chinese and Western managers view performance. Indeed, Asian culture, which is different from western countries, stesses on the hard working, loyalty, and protecting face/mianzi in the feedback processes result culture implications (Groeschl, 2003: 67) and the different criteria of performance appraisal (Schneider and Barsoux, 1997:140-141).

 

Therefore, in the dissertation, through a close research in China, the author attempts to seek the answer what problems of performance appraisal may occur in the Chinese context because of various Chinese cultures. By connecting to the basic theory of performance appraisal, the author tries to compare those problems between western and Chinese culture in order to find out the appropriate way to conduct the performance appraisal effectively.

 

1.2 QUESTIONS OF THE STUDY

The research questions are listed as the follows:

- What problems of performance appraisal will occur in the Chinese culture context?

- How culture differences influent performance appraisal?

- What are the key skills needed by managers to conduct performance appraisal?

- What are the most important aspects of Chinese managers manage their employees?

- To what extent will aspects of Chinese culture affect the ability of Chinese managers to conduct performance appraisals effectively?

 

1.3 OUTLINE OF DISSERTATION

In the first section- chapter 1: introduction, the author will provide a brief and general background in the problem field in performance appraisal in human resource management. Moreover, the objective of the study also will be offer in this section.

 

In the chapter 2, the second section, the author intends to review the relevant research literature in western world. The goal of the study aims to analyse theory and research and then understand the concept and nature, evolution and history in order to identify the need for new research that this study will contribute to.

 

In the chapter 3, which is the third section, the overall objective is very clear, that is, to comprehend and shed light on the issue of the influences of the Chinese culture on human resource management, in particular in the aspect of performance appraisal. As a result, the author will briefly provide a little information about Chinese market reform. Furthermore, some most critical characteristics and cultural values, which are different from western world, will be also indicated. Finally, the author will discuss the issue i.e. evolution of HRM and in particular performance appraisal in Chinese context.

 

In the next section-chapter 4, which is important for the study, is to analyse the differences in performance appraisal field between western world and China. The author will discuss this from briefly analysing the culture and manangement style, then extend to the skills which are needed by managers to conduct PA. Finally focus on the attributes of Chinese managers aim to answer the research questions.

 

At chapter 5, after analysed what problems are, then the author will offer the implication: what implications can be obtained from it.

 

Finally, in the last chapter 6, a conclusion of the dissertation will be given and the author will also illustrate needs of further study.